- Grayscale has filed with the SEC to convert its Digital Large Cap Fund into an exchange-traded fund (ETF) that would hold a diverse basket of cryptocurrencies.
- The fund currently manages over $600 million in assets and holds Bitcoin, Ether, Solana, XRP, and Cardano.
- This filing comes amid increased interest in crypto index ETFs following the SEC’s approval of Bitcoin and Ether ETFs.
Grayscale has submitted regulatory paperwork to transform its existing Digital Large Cap Fund into an exchange-traded fund (ETF) holding multiple cryptocurrencies, according to SEC filings dated April 1. The fund, which currently manages over $600 million in assets, contains a diversified portfolio of Bitcoin, Ether, Solana, XRP, and Cardano.
The asset manager’s S-3 filing with the U.S. Securities and Exchange Commission represents a critical step toward converting the non-listed fund into an ETF. The Digital Large Cap Fund has operated since 2018 but is currently only available to accredited investors with significant wealth or institutional status.
This regulatory submission follows an October 29 request by NYSE Arca for permission to list Grayscale’s index fund. According to Grayscale’s website, the fund composition includes multiple cryptocurrencies weighted according to their market capitalization, providing investors with diversified exposure to the digital asset market.
Growing Trend in Crypto Index Products
The filing highlights the accelerating pace of planned crypto product launches as federal regulators adopt a more accommodating approach toward digital asset regulation. Industry observers attribute this shift partly to U.S. President Donald Trump‘s influence on regulatory stance.
The SEC approved the first batch of mixed crypto index ETFs in December, though these funds – sponsored by Hashdex and Fidelity – contain only Bitcoin and Ether. Since their February debut, they’ve attracted relatively modest investor inflows.
SEC records show that in February alone, the regulator acknowledged more than a dozen exchange filings related to cryptocurrency ETFs. These submissions addressed various aspects including staking, options for existing funds, and proposals for altcoin ETFs featuring tokens like Solana and XRP.
Industry Perspective on Crypto Indices
Market analysts view crypto index ETFs as a logical evolution following the introduction of single-asset Bitcoin and Ethereum ETFs last year.
Katalin Tischhauser, head of investment research at crypto bank Sygnum, told Cointelegraph in August: "The next logical step is index ETFs because indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto."
This development represents another step in the mainstream financial industry’s ongoing integration of cryptocurrency investment products, potentially offering broader access to digital asset exposure through familiar investment vehicles.
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